88545 Research and Dialogue Series: Paper No. 5 The Socio-economic Costs of Crime and Violence in Papua New Guinea The Socio-economic Costs of Crime and Violence in Papua New Guinea Recommendations for Policy and Programs Sadaf Lakhani and Alys M. Willman May 2014 Social Cohesion and Violence Prevention Team Social Development Department © 2014 The World Bank Group 1818 H Street, NW Washington, DC 20433 Telephone: 202-473-1000 Internet: www.worldbank.org/socialdevelopment E-mail: asksocial@worldbank.org All rights reserved. This paper has been prepared as part of a broader study to understand the socioeconomic costs of crime and violence to businesses, government agencies, Civil Society Organizations (CSOs) and households in PNG. This work was requested by the Prime Minister and was undertaken with extensive input from international partners and local stakeholders. The papers in this Research and Dialogue series are informal publications of the World Bank. They are circulated to encourage thought and discussion. The findings, interpretations, and conclusions expressed herein are those of the author(s) and do not necessarily reflect the views of the International Bank for Reconstruction and Development/The World Bank and its affiliated organizations, or those of the Executive Directors of The World Bank or the governments they represent. Contents I. Introduction ............................................................................................................................... 1 II. Key Findings of the Study..................................................................................................... 1 III. Recommendations ................................................................................................................. 3 1. Strengthen data collection, analysis, monitoring & evaluation to support evidence- based policy-making. ...............................................................................................................................3 2. Address the key structural drivers of conflict ..................................................................................4 3. Direct interventions to address some of the ‘stressors’ in crime and violence dynamics that heighten tensions and exacerbate drivers ...................................................................6 4. Assess and strengthen the effectiveness of justice institutions ......................................................7 5. Strengthen coordination and strategic partnerships at the national, provincial and local level ...................................................................................................................................................9 IV. Conclusion ............................................................................................................................ 11 iii The Socio-economic Costs of Crime and Violence in Papua New Guinea Recommendations for Policy and Programs is roughly the same as it was in 2000. The I. Introduction rate varies widely across regions, with an estimated rate of 66 per 100,000 in Lae At the request of the Prime Minister’s and 33 in NCD, amongst the highest in office, between 2011-2013, the World the world. 1 Robbery and assault are the Bank conducted a study to understand most commonly reported crimes. Family the social and economic costs of crime and sexual violence (FSV) is also highly and violence in Papua New Guinea. The prevalent, and affects both females and purpose of the study was to feed a males. 2 national conversation about crime and violence and inform policy directions Managed conflict—sometimes violent— and program interventions. The work has been identified, historically, as has benefitted from extensive input from central to the maintenance of social international partners and local relationships in PNG. However, while stakeholders through a consultative and traditional systems of managing disputes participatory methodology. The have been effective in maintaining social findings of the study are summarized order historically, recent changes in separately in this Research and societies in PNG have created disputes Dialogue Series on the Socioeconomic that are less amenable to management by Costs of Crime and Violence in PNG. traditional means and are linked to at This brief outlines the policy and least some of the current violence programming recommendations that witnessed, especially in urban areas. emerge from the research. Formal justice systems have to date been II. Key Findings of the 1 These estimates are based on RPNGC data Study obtained by the World Bank. Estimates using data from victimization surveys implemented by the Levels of crime and violence in PNG Law and Justice Sector Secretariat (LJSS) are much have remained high, although with higher—750 and 323 for Lae and NCD, respectively. annual fluctuations, and differences 2 One study found that 80-90% of injuries treated at across regions. According to analysis of health clinics were the result of domestic abuse RPNGC data conducted for this study, (Amnesty International 2006). Another found that the homicide rate—considered the most the majority of pregnant women at an antenatal reliable indicator of overall crime—was clinic had been beaten during pregnancy by their husbands (PNG Law Reform Commission 1992 10.4 per 100,000 habitants in 2010, which quoted in Kopi 2010). 1 2 ■ The Socio-economic Costs of Crime and Violence in Papua New Guinea ineffective in stepping in to fill this gap. This number is more than four times the In this context, violence in PNG can be regional average for firms in East Asia understood, at least partly, as a result of and the Pacific (16 percent) and higher the inability of both traditional and than all of the regional averages reported formal institutions to manage the stresses in the World Bank Enterprise Surveys. 5 that have come with rapid social and Eighty-one percent of businesses reported economic changes. that their decisions for further investment or expansion of their operations were High crime rates affect the business affected by the law and order situation in climate in PNG. Eighty-four percent of the country, with only three percent of companies said they pay for security in businesses saying that their decisions the form of security personnel or were not affected at all. specialized hardware such as perimeter fencing, gates and security alarms. While the economic costs are According to the World Bank’s Business substantial, the longer-term social costs Enterprise Survey, this number is of crime and violence are much more significantly higher than the average for pervasive. The papers prepared for this the East Asia and Pacific region (52 series describe growing fissures between percent); Sub-Saharan Africa (61) and groups in PNG society, often provoking Latin American (62) regions. Private violence, as well as persistently high security represents a significant and levels of FSV violence that is impacting growing expense: more than two-thirds on social relationships and could of businesses employ private security potentially continue to impact future staff, and spend an average of 5 percent generations if not addressed of their annual costs on this, compared to appropriately. In interviews for this an average of 3.2 percent for firms in East study, business owners and employees Asia overall. 3 stressed that while the economic costs of crime and violence are important, it is the This insecurity affects business indirect, longer-term social impacts of decisions and constrains investment. crime and violence that effectively limit Businesses in PNG are concerned about them from operating to their full crime, and it influences their business potential. High levels of crime and decisions. Sixty-seven percent of firms violence create fear that constrains identified crime 4 as a major constraint. mobility of staff and clients, erodes trust, and reinforces stigma toward certain groups perceived to be dangerous, 3 World Bank Business Enterprise surveys: http://www.enterprisesurveys.org 4 “Crime” was defined as break-ins, vandalism, vehicle theft, property theft without force, arson misappropriation of funds or petty theft by (burning of premises), assault of employees on the employees, and extortion. business premises, kidnapping of employees, 5 http://www.enterprisesurveys.org. The regional employees suffering violence/ being attacked on averages for Latin America and Sub-Saharan Africa the way to and from the business premises, are 34 and 28 percent, respectively. Paper 5: The Socio-economic Costs of Crime and Violence in Papua New Guinea ■ 3 especially youth. Domestic violence, in (i) Conduct an analysis of bottlenecks particular, intrudes into the workplace. in the reporting, recording and collation of data on crime and violence. III. Recommendations There is a need to understand the constraints to data collection and analysis The policy recommendations outlined at different points along the chain of here are intended to address some of the reporting to prosecution. For example, as specific dimensions of crime and detailed in Notes 1 and 2, the current data violence in PNG that emerged during the shows a large gap between crimes rates course of the research. They were and arrests rates, despite widely discussed with government and non- fluctuating crime levels since 2001. governmental stakeholders in PNG in Validating the findings of the existing March 2014. They focus on five data, and understanding the reasons particular areas of intervention: behind this trend may be important for strengthening data collection, addressing well-targeted institutional capacity structural drivers of conflict, limiting development. This analysis could be existing social impacts, strengthening undertaken in partnership with PNG law justice institutions, and strengthening and order institutions. The analysis partnerships for crime and violence would need to consider the ways in prevention. Where relevant, these which these constraints differ for recommendations are directed at specific different groups (women, youth, actors. children), by type of crime, and other factors. This could be complemented by 1. Strengthen data collection, an assessment of institutional analysis, monitoring & functioning, and an evaluation of the evaluation to support programmatic support provided by donors to ascertain if they are relevant evidence-based policy- and effective. making. (ii) Provide training and technical Experience from the around the world assistance to improve data collection. demonstrates that policy is more effective This technical assistance would need to when based on robust and reliable data. be targeted at those charged with Strong data is also essential for effective monitoring and evaluation of the impact collecting and recording data, for example: police, health care professionals, of interventions supporting crime and and forensic specialists. violence prevention. This project analyzed existing data from RPNGC and (iii) Conduct regular, standardized victimization surveys (summarized in perception surveys. Note 1) and explored in more detail some During the research for this brief the of the inefficiencies in the system. Specific inconsistencies between official data measures that could be considered are: 4 ■ The Socio-economic Costs of Crime and Violence in Papua New Guinea categories and those used for 2. Address the key structural victimization surveys—even for basic drivers of conflict indicators such as homicide—emerged as serious constraints to developing a clear While the dynamics of crime and violence picture of the problem of crime and in PNG are complex and multi-faceted, violence that would inform policy there are a number of underlying drivers directions. Standardization of that have remained relatively consistent. victimization surveys with official data Some of these drivers are described in collection by the RPNGC would detail in Note 2, and could be addressed maximize complementarity between the by the following measures: crime victimization surveys and official crime statistics, allowing for robust (i) Recognize and address perceptions of injustice around the distribution of comparison and verification of findings. resources. Extending the victimization survey coverage to rural areas would also be an Along with the rapid economic changes important step in addressing the current and attendant social changes, perceptions urban bias in the existing data sets. of injustice within some societies in PNG are strong. These may be based on (iv) Include modules to capture data on exclusion from wealth, or perceptions FSV within periodic victimization that some individuals/communities are surveys. gaining unfairly relative to one’s own The current design of victimization group. These perceptions need not surveys does not comply with correspond to measurable indicators of international protocols on collecting data wealth. Those likely to have such on gender-based violence, and is likely perceptions include communities in resulting in significant under-reporting of urban areas, especially those located next FSV/GBV. More appropriate and sensitive to wealthier areas, or rural communities instruments that align with international located next to communities where large standards for capturing data on FSV extractives projects have located. The nation-wide would assist in effective data perceptions of injustice can be heightened collection on this critical topic. if the communities not receiving benefits are also subject to negative impacts from (v) Instituting regular analysis and the projects- such as environmental reporting on trends in crime data. pollution from mining, or exposure to This reporting could be done quarterly or crime and personal insecurity in urban even biannually, and include information areas. Equilibrium between societies on basic trends such as homicide, assault, historically has been an important feature property crime, or other important policy of PNG societies. While maintaining targets. Regular reporting could help equilibrium has largely been done ensure that efforts by police and other through the payment of material agencies charged with crime and violence compensation and through social prevention are data-driven. obligations- such as the wantok system, the extension of opportunity, for example Paper 5: The Socio-economic Costs of Crime and Violence in Papua New Guinea ■ 5 through education, vocational training for these supports the design of a more young people and awareness raising that integrated approach to crime and these are likely to support access to violence prevention. economic benefits in a more durable manner may be effective over the longer (iii) Design interventions that can address violence-oriented values and term in tackling perception of injustice in social practices. a rapidly-evolving economy. ‘Fighting’ is firmly rooted in social There are no easy measures to address relationships in PNG, accordingly, acts these perceptions, but some steps may of violence are often seen as acceptable- help. For example, targeting social and for example if triggered by a wrong- economic development programs to doing by some-one to oneself or to ones communities that are (or feel) excluded wantok, as has historically taken place in from development processes could help inter-clan fighting. Unequal gender to ease these perceptions. These measures power relations contribute to high levels could include job training programs, of FSV, which has become extreme in and/or local development programs some areas. As such, there has designed to improve the well-being of historically been a strong normative these communities and improve their basis for violence, and it takes a number sense of relative equality to other groups. of forms. However, the changing In addition, improving state economic context has catalyzed social communication about the distribution of changes, including shifts in social economic opportunities—whether via relationships and values that underpin large resource them. Some of these have magnified violent practices—such as the growing (ii) Understand and influence accusations of sorcery. This provides a incentives for crime perpetration. good opportunity for implementing a It will be important to analyze the strategy for lasting social change which incentives and disincentives that can targets both harmful behavior and affect the decision to perpetrate some practices development such as sorcery, crimes. For example, it is commonly domestic violence (for example through asserted that the threat of incarceration is enforcement of the newly enacted not a strong disincentive for crime, given Domestic Violence law), as well as that most crimes do not lead to challenges directly the normative basis of imprisonment and the fact that many these- as in focus on transmitting a new communities do not favor imprisoning set of values through nation-wide media perpetrators. An important question to and education campaigns aiming for explore would be the ways in which the longer-term social change. The modern-day adaptation of the international experiences of community- compensation-system contributes to based campaigns around female genital crime-perpetration, and what might be mutilation (FGM) and other harmful done to de-incentivize compensation- cultural practices can be instructive here. seeking. Deepening our understanding of 6 ■ The Socio-economic Costs of Crime and Violence in Papua New Guinea 3. Direct interventions to perpetration. While community-guns still address some of the seem to be a norm in some parts of the ‘stressors’ in crime and country, in other parts, there is a growing violence dynamics that presence of factory-made firearms. This underscores the need for identifying the heighten tensions and points at which these enter into the exacerbate drivers civilian population and working to stem In addition to the structural drivers of this flow. While the border with conflict, there are a number of other Indonesia is a particularly porous one, factors identified that may serve as stronger border-control at key points of ‘stressors’, or ‘triggers’ for violence and entry is required. There is a need to crime perpetration. Addressing these can improve the process of tracing, collection have the effects of reducing crime and and destruction of illegal firearms, violence within a short-time frame, in including addressing chain of custody tandem with interventions that work in weaknesses for seized firearms and the medium and longer-term to address ammunition. There also need to be the structural drivers. greater stockpile management and investigation and accountability for losses (i) Instill curbs on politically motivated police-issued weapons. violence and corruption. (iii) Alleviate housing pressures, This is critical, as this phenomenon affects particularly in urban areas. the credibility of the electoral system, the democratic system and the rule of law The inflated price of housing and the more broadly. While political violence conditions found in many urban and peri- tends to occur during election periods, urban areas were cited by numerous and has apparently decreased during the stakeholders as contributing to the last election period, related bribery, dynamics of crime and violence. Food coercion and violence is frequently used insecurity and the search for better to maintain positions of power—many of economic and education opportunities which were initially acquired with the are amongst the reasons for high levels of help of violence. Reforms in the legal rural-urban movements of people in system could be more focused on this PNG. The high costs of housing in urban type of white collar, but no less and peri-urban areas and resulting pernicious, crime. overcrowding puts a strain on both household income and on social (ii) Strengthen firearms control/limit relationships in these areas. Women and circulation. younger family members are often more While the data on illegal firearms use and susceptible to FSV in contexts of high circulation requires strengthening, the population density, overcrowding and existing evidence points clearly to the other household stresses. Income central role of firearms in initiating and pressures, the absence of urban planning sustaining unmanageable cycles of and of constrained police access to violence, and in assisting in crime- settlement areas in particular also Paper 5: The Socio-economic Costs of Crime and Violence in Papua New Guinea ■ 7 contributes to crime levels. These issues programs such as UYEP (Urban Youth require attention and a dedicated budget, Employment Program). at the very least, to further develop their work and initiate pilot programs. 4. Assess and strengthen the (iv) Support young people to find effectiveness of justice employment. institutions In the consultations, many stakeholders The following recommendations are emphasized the need for generating made as a few examples of actions that employment opportunities for youth that could be undertaken within an overall provide not only income, but also with strategy for strengthening of the formal dignity and the social mobility to achieve justice institutions such as the police, transition into adulthood. The link prosecutor’s office, state-provided legal between poorly skilled school leavers, aid, Courts and so on. Further analytics inequity in labor market access and crime (as described above), including an and violence was identified by a range of assessment of gaps in the existing different stakeholders during the course institutional framework and of individual of this study. Businesses reported that institutions would be necessary to inform they often find secondary school such a strategy. graduates unemployable as many of them are functionally illiterate or don’t have (i) Strengthen regulation and sufficiently well-developed numeracy oversight of the private skills. Businesses repeatedly explained security industry. that one of the reasons they employed Given the growth in the private security large numbers of international staff, was sector and the role that private actors play the unpreparedness of young people to in the provision of security in the country enter the workforce in leaving school. a more solid understanding of this sector Other stakeholders- NGOs- told us of the would complement deeper knowledge of downward spiral into crime that many informal and formal justice providers. young people experienced—in particular This analysis would need to examine, migrants from rural areas—when faced inter alia, the scale and span of the sector, with months and months of the ways and reasons for its growth, its unemployment. Early interventions can relationship with the police and other help break cycles of violence that involve formal, state institutions, labor practices low levels of literacy, poor competency and its impact on the overall labor market and vocational skills on the part of in PNG. Based on this analysis, a graduates, lower-self- esteem that results framework for tighter regulation of the from being unemployed, use of alcohol private security sector could be and other substances, and crime developed that better formalizes its role perpetration. Support for businesses who in the overall provision of overall law and run apprentice schemes would be one order. entry point, as would scaling up youth 8 ■ The Socio-economic Costs of Crime and Violence in Papua New Guinea (ii) Organize awareness campaigns to the village courts are under-resourced increase access to justice. and are thinly spread across the country. This study identified a clear need to (iii) Improve the cultural relevancy and continue efforts to enhance access to community–orientation of formal justice—via both traditional and formal justice institutions. institutions—and particularly for vulnerable groups. Generating a wider As described in Note 2, ‘Drivers of Crime and deeper knowledge of the formal and Violence in PNG’, formal justice justice institutions is considered to be institutions are often not seen as important in facilitating their use by culturally relevant because they do not citizens. Legal awareness campaigns can embody practices based on existing help target groups and geographical areas cultural mores, in the way that informal which currently under-utilize formal institutions do. For this reason, they often justice system. An awareness-drive could feel ‘distant’ to people, especially in rural also incorporate messages that seek to areas where the state does not have a shift public interest from the informal strong presence otherwise. This point paying of monetary compensation as this may apply to many aspects of the formal is one of the key drivers in the cycle of justice system, from the way in which violence. Training with justice sector police are required to respond to an personnel could also deliver the same incident, court processes that emphasize messages, with judges advised that singular ‘truth’-oriented narratives, to the maintaining monetary compensation as a type of sanctions given, which often do punitive measure in the formal justice not respond to community needs system may be necessary in the short- (especially in the case of incarceration). term, but should be gradually phased out Exploring the notion of cultural relevancy to a point where it is directly does not need to challenge the value base commensurate with estimated losses of the formal justice sector, but can incurred by the justice seeker or that it simply inform more culturally acceptable plays simply a symbolic role where practices that will resonate more with monetary losses cannot be established. justice seekers. Policing and the courts in Building trust and confidence are longer- particular could adopt more of a term aims which can only be done community-orientation. Restorative through sustained, effective and justice can be used to complement accountable delivery that is in line with existing court proceeding, and may be public expectations. Awareness-raising particularly valuable post juvenile justice campaigns, for example, to increase proceedings. Given the scale of crime public knowledge of the Courts, their perpetration and the drivers behind that, roles and legal jurisdictions should be it is an option that could be explored phased so as not to raise expectations further. One justice institution from beyond what can be delivered by the which to draw lessons with regard to Courts at that time. Improving access to culturally relevant practices may be the courts also would improve use; currently village courts. Paper 5: The Socio-economic Costs of Crime and Violence in Papua New Guinea ■ 9 (iv) Address capacity and foreseen to continue for the next few effectiveness deficits. years, enhancing the quality of the The main capacity weaknesses within the recruitment process and new recruit formal justice sector fall into two broad training is paramount. Training to help issue areas—maximizing financial officers address cultural issues such as resources, and strengthening human demands from wantoks and ethnic resources, in particular professionalism biases could also be integrated in within justice agencies. These reforms existing curricula. A review of the would build-upon actions (as described existing strategy for placement of above) that seek to enhance the relevancy officers would also be useful in the of justice sector institutions and regard. The issue of tackling approaches. corruption is included here, under human resources, as the main forms to • Make existing financial resources more be found in PNG involve practices that effective. A significant amount of often arise simply from the disjuncture financial resources have been allocated between cultural practices such as and spent by donors in recent years in wantokism with the professional support of the Government of PNG’s approach required within formal justice sector strategy. Official justice systems. Petty bribery, pay-offs development support—as well as the and so on may be linked to social overall government strategy—requires obligations to but they do undermine assessment to ensure that financial impartial, effective performance of the resources are being used strategically. justice sector and compromising A review of the functioning and legitimacy and effectiveness of police mandates of the existing justice force. In addition to training that helps institutions (see above) would be a to instill practices based on valuable input to this assessment. impartiality, putting in place stronger Initial analysis points to chronic disincentives for those who engage in underfunding of some parts of the corrupt or biased behavior may be justice architecture. Courts, required. particularly village courts which in some circumstances have proved to be 5. Strengthen coordination effective in managing local level and strategic partnerships at disputes, have been underfunded. • Strengthen and professionalize human the national, provincial and resources. Strengthening local level professionalism in the justice sector (i) The government of Papua New should be a key focus of existing Guinea has laid strong foundations training curricula, in particular for the towards efforts to achieve its police force as they function as the development goals, including a justice primary inter-face between citizens sector strategy. and the state justice system. With the Ensuring strong coordination at the current recruitment drive for the police national and district level will bring PNG 10 ■ The Socio-economic Costs of Crime and Violence in Papua New Guinea closer to achieving that goal. At the The World Bank team spoke with a national level, the justice sector Heads of number of stakeholders who are already Agencies National Coordination engaging with one another and finding Mechanism and the Working Group solutions to their crime and violence- provides a mechanisms for national-level related challenges. Formalizing and coordination. The vertical linkage strengthening partnerships with these however between district, provincial and actors- either in policy dialogue or district teams requires strengthening. In through negotiated and assigned roles particular, there is a need to ensure could enhance efforts to address crime stronger coordination across ministries and violence. These partnerships could and agencies- such as those responsible also raise the visibility of the state for child welfare, labor and employment, institutions as capable of responding to education, and housing and urban these issues, contributing to greater state development. legitimacy. Partnerships could engage the following stakeholders: Examples of effective coordination between different agencies and with • Community and religious leaders organized civil society (as described who play a key role in dispute below) exist at the district level- for resolution at the local level and who specific issues. The Family and Sexual have leverage within their Violence Action Committees (FSVACs) communities. Formalized structures operating in many districts, for example, for including community leaders in have developed a highly successful justice sector strategies can also have model of coordination that involves a the additional benefit of creating cross- community-orientation, and integrates country linkages, enhancing nation- restorative and well as punitive justice building efforts. approaches. • The Business Community is an important catalyzing force. Not only (ii) Given the ongoing state-building has the business community been efforts and the transitions the country impacted by crime and violence but is currently experiencing, partnering with non-state national-level actors they have been quite innovative in may be strategic. developing their own solutions to address and manage the impacts of Emphasizing strategic partnerships with crime and violence. As mentioned, the non-state actors will help not only in business sector is also contributing to drawing closer to stakeholders who the some of the drivers (e.g. through currently play a role in crime and hiring of private security). violence dynamics, but in leveraging non- • Within the business community, large state resources more effectively. These scale domestic and foreign investors partnerships will need to be strengthened could be engaged with to support their not only at the national level, but also at compliance with national law and the provincial and district levels, in order to have the greatest impact. Paper 5: The Socio-economic Costs of Crime and Violence in Papua New Guinea ■ 11 voluntary regulation based on IV. Conclusion international frameworks 6 that will help mitigate conflict and grievances The multi-phased study conducted by the around natural resource projects. World Bank has sought to answer • The NGO sector in PNG working on address some gaps in knowledge around crime and violence related issues is crime and violence in PNG, in order to relatively small, but quite committed contribute to more evidence-informed and diligent in their efforts- policy making and programming. The particularly in service delivery- such recommendations offered above are by no as provision of medical and other means comprehensive, but rather offer assistance to female victims of some focused perspectives around key violence. Formal partnerships with issues. They are not intended to be NGOs could help implementation of prescriptive. However, they are intended justice sector strategies- such as in to provide information, possible policy service delivery, or research and approaches towards an ongoing dialogue monitoring. on the issue of crime and violence and that they will fuel a growing coalition of state and civil society actors for an integrated response. 6Such as the Equator Principles, IFC Performance Standards, Responsible Mining Framework, etc. 12